An increase in the real interest rate will decrease consumption and investment
Indicate whether the statement is true or false
TRUE
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A firm that maximizes profits also
A) is inefficient. B) cuts corners in production processes so that its products are made too cheaply. C) uses the least-cost combination of resources. D) pays input prices lower than other firms do.
While equity funds are mostly made up of short-term U.S. government securities, money market funds are made up of bonds
a. True b. False Indicate whether the statement is true or false
The downward slope of the production possibilities curve illustrates the:
A. Cost-Benefit Principle. B. Incentive Principle. C. Scarcity Principle. D. Principle of Comparative Advantage.
The underlying reason of the problem of pollution is
A) a poorly run Environmental Protection Agency. B) greed on the part of consumers. C) greed on the part of producers. D) poorly defined property rights that are expensive to enforce.